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LendingClub faces sharp downgrade in analysts' 2024 forecasts

EditorAmbhini Aishwarya
Published 10/31/2023, 08:46 PM
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LendingClub Corporation (NYSE:LC) is witnessing a significant shift in sentiment as analysts' forecasts for 2024 take a downward turn, impacting shareholder perspectives. The consensus from nine analysts anticipates a stark contrast to previous predictions, with revenue and earnings per share (EPS) estimates showing a marked decrease.

The revised forecasts predict $792 million in revenues and an EPS of $0.32 for 2024, reflecting a 33% and 34% drop, respectively, from the earlier projections of $906 million in revenues and an EPS of $0.42. This represents a considerable slowdown compared to LendingClub's past track record of a 4.9% annual growth.

Alongside the reduced revenue and EPS estimates, the consensus price target has also seen an 18% reduction to $8.97. This change mirrors the weaker earnings outlook and indicates a notable shift in sentiment towards the company.

In the broader context, these new forecasts suggest an expected annualized revenue decline of 27% by the end of 2024, further underscoring a slowdown when juxtaposed with industry growth estimates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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